Cineworld sinks on expansion plans

The FTSE 100 is underperforming its Continental counterparts as commodity stocks like Royal Dutch Shell and Rio Tinto are in the red.

Another decline in copper has put pressure on the mining sector, and Royal Dutch Shell had a stellar session yesterday, and now we are seeing some profit taking.

Cineworld shares sold-off severely after the after the company said it was in advanced talks to acquire Regal Entertainment for $3.6 billion. Cineworld would gain exposure to the US through the takeover. Cinewolrd is planning on funding the acquisition by issuing debt and offering a rights issue, and this put pressure on the stock, it is down 15%.

Findel posted a 5.7% rise in first-half revenue to £226 million, and the pre-tax profit for the period was £11.9 million. The company stated it expects to meet its full-year expectations, and the share price is up 20.9%.

GBP/USD has been propelled higher on the news the UK has agreed in principle to pay a ‘divorce bill’ to the EU. The exact amount has been hasn’t disclosed but it is believed to be in the region of £50 billion. This news will hopefully move along the Brexit talks, which is benefitting the pound.

EUR/USD is higher on the day as the US dollar is broadly lower. The eurozone had some mixed data today, as the French economy grew by 0.5% in the third-quarter – meeting expectations, and Spanish CPI stayed at 1.7%, and the consensus was for 1.9%.

At 1.30PM (UK time) the US will announce the third-quarter GDP figure and economists are expecting a reading of 3.2%, and that would be an improvement on the previous reading of 3%.

We are expecting the Dow Jones to open up 30 points at 23,866, and we are calling the S&P 500 down 1 point at 2626.

Tiffany & Co will announce their third-quarter figures today.

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